Correlation Between SK Hynix and SillaJen
Can any of the company-specific risk be diversified away by investing in both SK Hynix and SillaJen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SK Hynix and SillaJen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and SillaJen, you can compare the effects of market volatilities on SK Hynix and SillaJen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SK Hynix with a short position of SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and SillaJen.
Diversification Opportunities for SK Hynix and SillaJen
Very good diversification
The 3 months correlation between 000660 and SillaJen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen and SK Hynix is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SK Hynix are associated (or correlated) with SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of SK Hynix i.e., SK Hynix and SillaJen go up and down completely randomly.
Pair Corralation between SK Hynix and SillaJen
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.99 times more return on investment than SillaJen. However, SK Hynix is 1.01 times less risky than SillaJen. It trades about 0.0 of its potential returns per unit of risk. SillaJen is currently generating about -0.03 per unit of risk. If you would invest 19,580,000 in SK Hynix on November 6, 2024 and sell it today you would lose (470,000) from holding SK Hynix or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. SillaJen
Performance |
| Timeline |
| SK Hynix |
| SillaJen |
SK Hynix and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and SillaJen
The main advantage of trading using opposite SK Hynix and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, SillaJen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SillaJen will offset losses from the drop in SillaJen's long position.| SK Hynix vs. Jahwa Electronics Co | SK Hynix vs. Korea Electronic Certification | SK Hynix vs. Daishin Information Communications | SK Hynix vs. Alton Sports CoLtd |
| SillaJen vs. ADTechnology CoLtd | SillaJen vs. BIT Computer Co | SillaJen vs. Raontech | SillaJen vs. SS TECH |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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